Hong Kong’s Stablecoin Bill Passed to Strengthen Virtual Asset Regulations
- Hong Kong’s Stablecoins Bill introduces a licensing regime for stablecoin issuers.
- Only licensed institutions can issue FRS in Hong Kong, enhancing investor protection.
- Stablecoins Ordinance takes effect this year, with a transitional period for businesses.
The Legislative Council of Hong Kong has enacted the Stablecoins Bill, which will govern fiat-referenced stablecoins (FRS). Under this legislation, issuers of virtual asset (VA) products will be required to apply for licenses to help tighten regulations in Hong Kong. The bill aims to boost financial stability and encourage new ideas in the virtual asset area, placing Hong Kong at the forefront of global digital finance regulation.
Under this new regulation, any organization issuing an FRS in Hong Kong or linking it to the Hong Kong dollar needs to be licensed by the Monetary Authority (MA). Issuers will be required to properly handle and separate client funds as required by the rules. They will also need to create a solid method to maintain the value of the stablecoin.
Tighter Regulations for Hong Kong Stablecoins
The introduction o…
The post Hong Kong’s Stablecoin Bill Passed to Strengthen Virtual Asset Regulations appeared first on Coin Edition.
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Hong Kong’s Stablecoin Bill Passed to Strengthen Virtual Asset Regulations
- Hong Kong’s Stablecoins Bill introduces a licensing regime for stablecoin issuers.
- Only licensed institutions can issue FRS in Hong Kong, enhancing investor protection.
- Stablecoins Ordinance takes effect this year, with a transitional period for businesses.
The Legislative Council of Hong Kong has enacted the Stablecoins Bill, which will govern fiat-referenced stablecoins (FRS). Under this legislation, issuers of virtual asset (VA) products will be required to apply for licenses to help tighten regulations in Hong Kong. The bill aims to boost financial stability and encourage new ideas in the virtual asset area, placing Hong Kong at the forefront of global digital finance regulation.
Under this new regulation, any organization issuing an FRS in Hong Kong or linking it to the Hong Kong dollar needs to be licensed by the Monetary Authority (MA). Issuers will be required to properly handle and separate client funds as required by the rules. They will also need to create a solid method to maintain the value of the stablecoin.
Tighter Regulations for Hong Kong Stablecoins
The introduction o…
The post Hong Kong’s Stablecoin Bill Passed to Strengthen Virtual Asset Regulations appeared first on Coin Edition.
Read More
Chainlink Facilitates Secure Exchange of Hong Kong CBDC and Australian Stablecoin